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October 8, 2010 in Business, Nation/World
Bank of America halts all foreclosure sales
WASHINGTON — Potential flaws in foreclosure documents are threatening to throw the real estate industry into a full-blown crisis, as Bank of America today became the first bank to stop sales of foreclosed homes in all 50 states.
The move, along with another decision on foreclosures by PNC Financial Services Inc., adds to growing concerns that mortgage lenders have been evicting homeowners using flawed court papers.
Charlotte, N.C.-based Bank of America Corp., the nation’s largest bank, said today it would stop sales of foreclosed homes in all 50 states as it reviews documents used to process foreclosures. A week earlier, the company had said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.
“We will stop foreclosure sales until our assessment has been satisfactorily completed,” company spokesman Dan Frahm said in a statement. “Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.”
Bank of America did not disclose how many homeowners would be affected.
State and federal officials have been ramping up pressure on the mortgage industry over worries about potential legal violations amid growing evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them. Also Friday, Sen. Christopher Dodd, D-Conn, the chairman of the Senate Banking Committee, said he would hold a hearing on the issue next month.
“American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud,” Dodd said. “Regulators at the federal, state, and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law.”
A document obtained last week by the Associated Press showed a Bank of America official acknowledging in a legal proceeding that she signed thousands of foreclosure documents a month and typically didn’t read them. The official, Renee Hertzler, said in a February deposition that she signed 7,000 to 8,000 foreclosure documents a month.
Earlier in the week, Senate Majority Leader Harry Reid, D-Nev., urged five large mortgage lenders to suspend foreclosures in Nevada until they have set up systems to make sure homeowners aren’t “improperly directed into foreclosure proceedings.” Nevada is not among the states where banks had suspended foreclosures.
Also Friday, PNC Financial Services Group Inc. said it is halting most foreclosures and evictions in 23 states for a month so it can review whether documents it submitted to courts complied with state laws. An official at the Pittsburgh-based bank confirmed the decision on Friday, which was reported earlier by the New York Times. The official requested anonymity because the decision hasn’t been publicly announced.
PNC becomes the fourth major U.S. lender to halt some foreclosures amid evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them.
In addition to PNC and Bank of America, Ally Financial’s GMAC Mortgage unit and JPMorgan Chase & Co. have announced similar moves in the past two weeks.
In some states, lenders can foreclose quickly on delinquent mortgage borrowers. By contrast, the 23 states use a lengthy court process. They require documents to verify information on the mortgage, including who owns it.
© Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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spokanecougar on October 08 at 10:40 a.m.
Why are people in this country so damn stupid to still do business with this bank?
Tired of being surrounded by dumbasses in this country who are to stupid, lazy and ignorant to know any better and take the time to find anything better.
soccermomsusie on October 08 at 12:18 p.m.
I like Bank of America. To admit to a mistake is a very human thing to do. They just proved the Supreme Court right!
Corporations are people too, people that live forever!
I wonder if this is how Greek mythology got started. We could be on the ground floor of something amazing!
W again in 2010!
HEAR OUR VOICE!!!
Bruce (aka thatoneguy) on October 08 at 1:19 p.m.
From the article:
“American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud,” Dodd said. “Regulators at the federal, state, and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law.”
DUH. Obviously they need to change the law so that all this sloppy corner-cutting becomes legal, and people can be foreclosed for having a credit card balance.
mrzipfel on October 21 at 2:25 p.m.
Talk about a lot of bull.
The banks and also lending institutions always know what is goin on.
To say they had some problems is a understatement.
In fact they are lieing through their teeth let me give you
a true example of breech of contract excetra and theft by deception.
Last put my house on the market because my bills were larger than my income . My realtor and I tried all of last year to sell my home so I could pay off credit cards and mortgage.
In later part or fall/winter a default notice was served on me because of illness got behind in my bills.
Later in first part of 2010 was served with notice of mortgage foreclosuer sale.
My realtor and I asked for a and received two or three postponements and a short sale agreement with BOA
during that time BOA acting as agents for a fanniemae type agency sold my note to fanniemae unbeknown to us.
During this time frame we found a buyer willing to pay more than what was owed on the mortgage we then asked them the realtors on my behalf weestergard realty for the final closing costs so we could close the sale between buyer and sellor.
McGrane and associates attorneys at law were the signed agents of escrow for both myself and buyer and the money was being held by the sellors lending institution.
Needless to say McGane and associates communicated by phone and email and recieved to repsonce from BOA same for my realtors.
A point also of contention we had asked for another posponment of the forelcosure sale because they were not workinhg with us in good faithg and had promised we could have a short sale in fact that would of netted thousand for myself and my realtor and given a nice young couple a great home for a family of four at below market price and local county assessors appraisal.
My realtors said to me she had never in her twenty years of expereince as a agent and as a broker of realestate been let put this been shafted by a bank this way.
Also after consulting with and attorney and also consulting other I have found out that I can sue them for triple damages if I should ever get enough money to go after them.
Un forunately I m am now ill and homeless because of Bank of Americas home loan depts lack of ethics,oversight,negligence,breech of faith.
On the short sale aggreement was done between Equater.com or similar and MY realtor and my self.
In addition two postponements were agreed to by email and regular snail mail and also a third was by telephone conference.
They failed to honor the third postponement.
I am hopping mad have no home have been staying at hotels 9days then recievied one voucher from the lovely people at Catholic Charities for one night stay at local motel for a total of 10 days in hotels my cash ran out.
I was forced out of my home on the 8th of october.
I Had to sell thousand of dollar of tools for pennies on the dollar many new just to pay for moving my personal possessions and had to give up my 4 cats of many years companionship.
If BOA and Fannie Mae had honored the short sale agreement I would probaly be ahead on my utility bills and have a nice little one bedroom house for a modest price for at least a year but now am sleeping in my pick up
I am disabled have numerous physical aliments and problems I can even walk six blocks and can barely breath.
Sincerely Yours
Kimberly R.Zipfel
2268 Aladdin RD
Colville WA 99114
Formerly of 1233 E. Elep. Ave
Colville Wa 99114
P.S. I am low income my cell is 1-509-6754-4272 if you know a lawyer who would work on a reasonable contingency share let me know